What to Do If You Can’t Give Your Employee the Raise They Ask For

What to Do If You Can’t Give Your Employee the Raise They Ask For

It’s every manager’s nightmare, your top-performing
employee comes into your office and asks you for a well-deserved raise.

Unbeknownst to the employee but known all too well
to you is the budget and company policy. And you know for a fact there are not
funds available to give raises or promotions.

What do you do?

Let’s face it, this is a hard spot to be in. You
need to show your top-performing employees you value them, and their
contributions are recognized and appreciated. Even though this is a hard spot
to be in, it’s not an impossible spot. Here are some options to consider showing
your employees you value and appreciate them – even without a raise.

First, Ask
Questions

Before you give the news there aren’t funds
available for a raise, consider this conversation as an opportunity to find out
what motivates them. Find out what they consider to be fair compensation and be
sure to discuss all compensation aspects, including vacation, flextime, fringe
benefits, etc.

Look into what they want to learn and accomplish
professionally. Maybe there is training they can attend or a project they can
lead. Top performers are usually overachievers and offering them a lead role on
a project or giving them an opportunity to develop new skills shows your
genuine interest in their career and development.

Next, Be
Honest

Your employees are not privy to the same level of
company information you are. Share with them, to the extent you can, the
reasons there is not money for raises. Being honest and transparent with
employees shows trust. Be empathetic and acknowledge their accomplishments as
well. It’s okay to say, “If this was 100% in my control, of course I’d give you
a raise. But unfortunately, this goes beyond my approval authority.”

Finally, Be an
Advocate

If you have truly deserving employees while knowing
there is a policy of ‘no raises’ it’s okay to still advocate on their behalf.
Just because a raise isn’t available, maybe there is a one-time bonus that
could be secured from a different budget line. Or perhaps there is funding in
the training budget to send them to that conference they have always wanted to
go to.

Also, continue to think about recognition in other
meaningful ways that are within your authority to grant. Some ideas are
inviting them to share important findings at a company-wide meeting, giving
them time to pursue interests and passion projects outside of work.

Be a Leader

Managing people means considering the needs of your
team and how you can align them to accomplish the goals and objectives of the
company you work for. It’s not always an easy job, but if done with purpose,
leadership can be an extremely rewarding role.

Contact the staffing experts at Jarvi Group to accomplish your recruitment goals.